Pistons & Profits

For the U.S. commercial aviation industry last week, the ceiling looked unlimited. Pan American World Airways announced a $110 million order with Douglas Aircraft for 40 of its speedy (365 m.p.h.) piston-engined DC-7s, the biggest order ever placed by an airline with a single manufacturer. Two days later, Northwest Airlines ordered another 14 Douglas planes costing $28 million. Together, the two boosted Douglas' backlog to 156 planes, worth more than $500 million, the highest figure in its history. At rival Lockheed, orders were on hand for $225 million worth of Constellations.

The big Douglas and Lockheed orders meant that U.S. airlines have decided to hold off on jet transports, probably until 1960. It will take at least five, possibly seven, years for them to amortize their costly new fleets of piston-engined craft, some of which will not even be delivered until 1957. Furthermore, there is little likelihood that a U.S. jet transport will be on the market for some time to come. In Washington last week, Air Force Assistant Secretary Roger Lewis told Boeing Airplane Co., which had hoped to turn out a commercial version of its giant KC-135 jet tanker by 1958, that the Air Force wants Boeing to concentrate on military planes until all defense commitments are filled.

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